Argentina, Paraguay agree to seek solution over Yacyretá debt

Photo file shows Yacyretá binational hydroelectric dam

The Argentine and Paraguayan governments have agreed to tighten bilateral relations in a bid to find a solution for the liabilities held by the Binational Yacyretá Entity, the organisation charged with running the dam of the same name.

A report released in 2009 by the Paraguayan Congress estimated that the BYE was indebted to the tune of 15.84 billion dollars, 93 percent of which was owed to the Argentine government with the remainder to banks, suppliers and multilateral organisations.

Foreign Minister Héctor Timerman and Paraguayan counterpart Eladio Loizaga sealed the pact during a meeting held in Asunción, where they confirmed the desire to "strengthen and deepen links between both countries."

Speaking about the case of Yacyretá, the officials both agreed on "the importance of starting negotiations in search of an integral agreement over the financial base and electricity services, as well as cooperation on other relevant issues surrounding the Binational Yacyretá Entity."

EBY head Juan Schmalko, also present at the summit, hinted that diplomatic representatives could meet again in May to mark a formal opening of negotiations over Paraguay's alleged debt to Argentina.

The ministers, meanwhile, also highlighted the passing of contracts for studies into connecting various territorial points between the two nation, while committing themselves to prioritising infrastructure works in those border regions.